LONDON, Aug. 12 (UPI) -- The Bank of England Wednesday said inflation held under the target rate of 2 percent in the second quarter as stimulus funds began to prompt "a slow recovery."
"On balance, the stimulus should lead to a slow recovery in economic activity, but the timing and strength of that recovery remains highly uncertain," the bank said in its quarterly Inflation Report.
The report pointed to "encouraging signs" in financial markets and bank funding, "although financial conditions remained fragile."
"Household and business confidence picked up somewhat," but from "very low levels" the bank said.
On the domestic front, the housing market "recovered modestly," the bank said. The value of sterling rose, but remained 20 percent below its 2007 peak.
Internationally, the decline in U.S. consumer spending slowed, while world output remained in a downward trend. However, "the turnaround was most marked in some Asia-Pacific economies, where growth appears to have rebounded strongly," the report said.
